Circles: Start of new US pharmaceutical tariffs delayed - US Delays Drug Tariffs, Avoiding Trade War with EU
The US has delayed new drug tariffs, averting a potential trade war with the EU. The move comes after the EU agreed to hold off on countermeasures worth €21 billion until August 1, 2025.
Initially, US President Donald Trump had planned to impose a 100 percent tariff on imports of branded drugs and patented medicines starting October 1. This was seen as part of efforts to pressure pharmaceutical companies to relocate production to the US or lower prices. However, the EU was set to be exempt from these latest drug tariffs, with EU imports remaining subject to a 15 percent tariff.
Preparations for tariffs against pharmaceutical companies that refused to comply had begun. But the US has now delayed these drug tariffs, providing some breathing room for both sides to continue negotiations. Companies can still avoid the tariff by establishing a production facility in the US.
The delay in US drug tariffs, along with the EU's pause on countermeasures, signals a willingness on both sides to engage in further discussions. The outcome of these negotiations will shape the future of transatlantic trade in pharmaceuticals.
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